Paralel Advisors LLC Makes New Investment in Credit Acceptance Corporation $CACC

Paralel Advisors LLC acquired a new position in Credit Acceptance Corporation (NASDAQ:CACC) during the 2nd quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm acquired 5,455 shares of the credit services provider’s stock, valued at approximately $3,473,000. Paralel Advisors LLC owned 0.05% of Credit Acceptance as of its most recent SEC filing.

Other large investors have also recently made changes to their positions in the company. Versant Capital Management Inc grew its stake in shares of Credit Acceptance by 587.5% during the 2nd quarter. Versant Capital Management Inc now owns 55 shares of the credit services provider’s stock valued at $35,000 after acquiring an additional 47 shares during the period. State of Wyoming bought a new stake in Credit Acceptance during the 4th quarter worth approximately $27,000. Kestra Advisory Services LLC purchased a new position in Credit Acceptance during the fourth quarter valued at approximately $27,000. Rockefeller Capital Management L.P. lifted its holdings in Credit Acceptance by 53.3% during the fourth quarter. Rockefeller Capital Management L.P. now owns 69 shares of the credit services provider’s stock valued at $31,000 after purchasing an additional 24 shares in the last quarter. Finally, Parallel Advisors LLC boosted its position in shares of Credit Acceptance by 590.0% in the first quarter. Parallel Advisors LLC now owns 69 shares of the credit services provider’s stock worth $29,000 after purchasing an additional 59 shares during the period. 81.71% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

A number of analysts have recently issued reports on the stock. Zacks Research downgraded shares of Credit Acceptance from a “strong-buy” rating to a “hold” rating in a research report on Wednesday, May 13th. TD Cowen lifted their target price on shares of Credit Acceptance from $575.00 to $600.00 and gave the company a “hold” rating in a research note on Wednesday, August 5th. Finally, Weiss Ratings raised shares of Credit Acceptance from a “hold (c+)” rating to a “buy (b-)” rating in a report on Thursday, July 16th. One equities research analyst has rated the stock with a Buy rating and three have given a Hold rating to the company. According to MarketBeat, the company currently has a consensus rating of “Hold” and an average price target of $570.00.

Credit Acceptance Stock Up 0.5%

Shares of CACC opened at $585.88 on Friday. The business’s 50 day moving average is $598.85 and its 200 day moving average is $535.37. The company has a current ratio of 14.89, a quick ratio of 14.89 and a debt-to-equity ratio of 3.84. Credit Acceptance Corporation has a 12-month low of $401.90 and a 12-month high of $668.86. The company has a market capitalization of $6.13 billion, a PE ratio of 12.88 and a beta of 1.37.

Credit Acceptance (NASDAQ:CACC) last posted its quarterly earnings results on Tuesday, August 4th. The credit services provider reported $12.12 earnings per share for the quarter, missing the consensus estimate of $12.20 by ($0.08). Credit Acceptance had a return on equity of 31.67% and a net margin of 21.54%.The business had revenue of $415.00 million during the quarter, compared to the consensus estimate of $588.07 million. During the same quarter in the previous year, the company earned $10.05 earnings per share. The company’s revenue for the quarter was up .6% compared to the same quarter last year. Research analysts expect that Credit Acceptance Corporation will post 47.8 earnings per share for the current fiscal year.

Insider Transactions at Credit Acceptance

In related news, COO Jonathan Lum sold 6,000 shares of the firm’s stock in a transaction on Wednesday, June 24th. The shares were sold at an average price of $600.00, for a total transaction of $3,600,000.00. Following the completion of the transaction, the chief operating officer directly owned 31,609 shares of the company’s stock, valued at approximately $18,965,400. This trade represents a 15.95% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, major shareholder Jill Foss Watson sold 11,000 shares of Credit Acceptance stock in a transaction on Thursday, July 2nd. The shares were sold at an average price of $653.24, for a total transaction of $7,185,640.00. Following the completion of the sale, the insider owned 49,346 shares in the company, valued at approximately $32,234,781.04. This represents a 18.23% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last three months, insiders have sold 44,289 shares of company stock valued at $27,525,241. 6.10% of the stock is owned by corporate insiders.

About Credit Acceptance

Credit Acceptance Corporation, founded in 1972 and headquartered in Southfield, Michigan, is a specialty finance company focused on the indirect automotive lending market. The company partners with independent and franchised auto dealers to facilitate purchase financing for consumers who may not qualify for traditional prime auto loans. By purchasing retail installment contracts originated by these dealers, Credit Acceptance provides capital and credit insurance to support vehicle sales, enabling dealers to broaden their customer base and reduce credit risk.

Through its proprietary underwriting platform and risk management strategies, Credit Acceptance evaluates borrower applications, structures credit plans, and retains servicing rights on the acquired contracts.